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Same-store sales decreased 4% in the first quarter ended April
29, compared with Wall Street expectation of a 2.5% fall.
Seasonal goods account for 35% of Lowe's first quarter, meaning
the cooler weather will impact the company more than it affected
Home Depot Inc, D.A. Davidson wrote in a note, ahead of the
earnings report.
Lowe's is also dependent on do-it-yourself (DIY) customers for
sales. The return of people to offices is affecting demand from
DIY customers.
"Because 75% of our customer base is DIY, our Q1 sales were
disproportionately impacted by the cooler spring temperatures,"
Chief Executive Officer Marvin Ellison said in a statement.
Home Depot executives said on Tuesday more customers would buy
seasonal goods at its stores in the current quarter after its
seasonal categories posted a double-digit decline in comparable
sales for the first quarter.
Lowe's also reaffirmed its fiscal 2022 outlook.
In contrast, Home Depot posted a surprise rise in quarterly
comparable sales and increased its annual forecasts, saying
growth in sales to professionals including builders and handymen
outpaced that to DIY customers.
Lowe's shares, down 25% this year, fell 1.6% in premarket
trading.
Net earnings edged higher to $2.33 billion, or $3.51 per share,
from $2.32 billion, or $3.21 per share, a year earlier. Analysts
had expected $3.22 per share, according to IBES data from
Refinitiv.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by
Sriraj Kalluvila)
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